BIOLASE Reports First Quarter 2019 Results

• First Quarter U.S. Laser Revenue Increased 18% Year-Over-Year
• First Quarter Operating Loss Decreased 16% Year-Over-Year

IRVINE, Calif., May 9, 2019 /PRNewswire/ -- BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today reported net revenue of $10.3 million for the first quarter ended March 31, 2019, an increase of 3% compared to the first quarter of 2018.

First Quarter Highlights

• U.S. laser revenue increased 18% year over year
• U.S. consumables and other revenue increased 4% year over year
• Model market laser revenue, which includes Southern California and Dallas/Ft. Worth, increased 88% year over year
• New customer growth, reduced expenses and a favorable change in product mix led to gross margin expansion of almost 400 basis points
• Operating expenses decreased 4% year over year

"Our improved results for the first quarter reflect the success of our revenue growth and cost savings initiatives, including continued solid execution of our new commercial marketing efforts to increase awareness and expand adoption of our all tissue Waterlase laser," said Todd Norbe, President and Chief Executive Officer. "We are pleased with the strong success of our two model market campaigns, and we continued to add new customers and increase utilization of our product during the quarter, driving our recurring, higher margin consumables revenue and further improving our gross margin. With this positive momentum and our focus on continued success of our go-to-market initiatives and operational improvements, we continue to feel confident in achieving our goal of becoming EBITDA positive in the fourth quarter of 2019."

2019 First Quarter Financial Results

Net revenue for the first quarter of 2019 was $10.3 million, an increase of 3%, compared to net revenue of $10.0 million for first quarter of 2018. Excluding the non-core imaging business, revenue for the first quarter of 2019 increased 4% to $9.8 million from $9.4 million for the first quarter of 2018. U.S. laser revenue was $2.6 million for the first quarter of 2019, an 18% increase compared to U.S. laser revenue of $2.2 million for the first quarter of 2018. U.S. consumables and other revenue for the first quarter of 2019, which consists of revenue from consumable products such as disposable tips, increased 4% compared to the first quarter of 2018. Outside the U.S., laser revenue declined 4% to $3.4 million for the first quarter of 2019 compared to $3.5 million for the first quarter of 2018, whereas consumables and other revenue increased 4% year over year.

Gross margin for the first quarter of 2019 was 34%, compared to 30% for first quarter of 2018. The higher gross margin reflects new customer growth, reduced expenses and a favorable change in product mix with an increase in laser sales, which have a higher margin than the Company's other product offerings, including its non-core imaging products which are being phased out from the Company's product offering in the second quarter of 2019. Total operating expenses were $7.9 million for the first quarter of 2019 compared to $8.2 million for the first quarter of 2018, a decrease of over 4%. Operating loss for the first quarter of 2019, was $4.4 million, compared to an operating loss of $5.2 million in the first quarter of 2018, a decrease of 16% year over year. Net loss for the first quarter of 2019 was $4.9 million, or $0.23 per share, compared to a net loss of $5.0 million, or $0.25 per share for the first quarter of 2018.

Cash, cash equivalents, and restricted cash totaled $3.3 million as of March 31, 2019.

Subsequent to the end of the first quarter, on May 7, 2019 the company amended its credit agreement with SWK Funding LLC to increase the total commitment in its term loan from $12.5 million to $15.0 million and to revise certain of the financial covenants. Further details of the amendment will be included in the Company's Form 10-Q filing for the period ended March 31, 2019 to be filed with the SEC.

Use of Non-GAAP Measures

The Reconciliation of GAAP Net Loss to Non-GAAP Net Loss table at the end of this news release provides the details of the Company's non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company's non-GAAP net loss and net loss per share.

The non-GAAP net loss for the first quarter of 2019 was $3.2 million, or $0.15 per share compared with a non-GAAP net loss of $4.0 million, or $0.20 per share for the first quarter of 2018.

Conference Call Information

BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the first quarter ended March 31, 2019, and to answer questions. For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the U.S./Canada is 877-407-4019. For international participants outside the U.S./Canada, the dial-in number is 201-689-8337. For all callers, refer to the Conference ID 13687240. To access the live webcast, visit the Investor Relations section of the BIOLASE website at www.biolase.com and see "Investor Events".

An audio archive of the webcast will be available for 30 days on the Investor Relations section of the BIOLASE website.

About BIOLASE

BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine and also markets, sells, and distributes dental imaging equipment, including three-dimensional CAD/CAM intra-oral scanners and digital dentistry software. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE's proprietary laser products incorporate approximately 255 patented and 73 patent-pending technologies designed to provide biologically clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver the best results for dentists and patients. BIOLASE's principal products are revolutionary dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications, and a full line of dental imaging equipment. BIOLASE has sold over 39,600 laser systems to date in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer markets.

For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.

BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements regarding the Company's efforts to achieve its goal of becoming EBITDA positive. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should," and variations of these words or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described, from time-to-time, in the "Risk Factors" section of BIOLASE's annual and quarterly reports filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.

View original content to download multimedia:http://www.prnewswire.com/news-releases/biolase-reports-first-quarter-2019-results-300846930.html

SOURCE BIOLASE, Inc.

Company Codes: NASDAQ-SMALL:BIOL